Bill > S1574

This bill proposes to amend existing tax law by introducing a new "jobs incentive credit" for businesses that create eligible jobs in the Commonwealth. The credit is calculated based on a percentage of the salary paid to employees in these newly created jobs, subject to Massachusetts income tax withholding, and is spread equally over three years. To qualify, a business must demonstrate a net increase in its weighted average employment compared to the previous year, with the credit capped at 50 jobs. The bill defines key terms such as "eligible jobs," "job qualifier fraction" (which accounts for hours worked, location, and duration of employment), and "local jobs created." Businesses must apply for the credit and submit annual information to the Commissioner of Revenue to maintain eligibility, with specific rules for companies creating more than 50 jobs and for re-applying for the credit. The program is set to sunset on June 30, 2016, after which the Commissioner of Revenue will conduct a cost-benefit analysis and report findings and recommendations to the legislature.